Exemption of GST on Personal Protection Equipment Ineffective: Officials

The government sources informed the media that the exemption of GST (Goods and Services Tax) on personal protection equipment like medical test kits, masks, sanitizers, and ventilators will neither benefit the manufacturers nor the customers. Presently, the GST is charged on masks at the rate of 5%, on ventilators and medical testing kits at the rate of 12% each and that on sanitizers at the GST rate of 18% Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28%. The GST is charged at the rate of 5% if the cost of any other personal protective equipment is less than Rs. 1,000 and at the rate of 12% if the cost of the equipment is more than Rs. 1,000. A lot of different leaders and opposition party heads are demanding the government to exempt such personal protective equipment from GST.

Tax officials have explained that the GST, being a type of value-added tax, would not benefit the manufacturers or customers if removed. They said that even if the government decides to remove GST from the personal protective equipment, still the cost of the equipment will remain unchanged as the GST is already charged on the previous inputs before it comes in the hand of the producers. If GST is exempted, then Input Tax Credit (ITC) A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. of the producer will be blocked and the producer will add such blocked amounts in the cost of the equipment.

The cost of the equipment will increase that will not be beneficial for the customers and the producers too will have to suffer as they will have to maintain separate accounts for the inputs and the items exempted from GST. The need to maintain separate accounts will increase the compliance burden of the producer. Additionally, the importers will get the equipment at cheaper prices as the government has removed custom duty and cess on the essential items, so the domestic producers will have to face more problems as their products will be more expensive than the imported products.